Central Coalfields Ltd (CCL) has witness subdued response from power producers in special forward auction carried out for sale of 3,570,000 t coal wherein only 160,000 t was sold.
The auction held on 29 Sep ’20 was conducted for the first time since Apr ’20, and had recorded three-fold increase in allocation from 48,000 t in the previous term.
Besides, an exponential rise of 114% was noted in terms of price realization for the sold quantity assessed at INR 2069/t against INR 967/t in Apr ’20, due to sale of higher coal grades involved in the auction.
However, it failed to incite premium due to the sluggish power demand, as entire volume was booked at the floor price. Moreover, no bids were recorded for coal offered from 10 out of 15 collieries. (Detailed source-wise result can be seen here).
Company’s offering of 870,000 t washery grade of coking coal in addition to the bulk of non-coking coal, had fetched better response in terms of allocation, wherein the entire 120,000 t comprising of W4 grade coal was booked from Rajrappa colliery at the floor price of INR 2408/t.
Whereas, in case of non-coking coal, out of 2,700,000 t put up for sale, only 40,000 t material was sold, with Gidi-C colliery recording 100% allocation for sale of G11 grade at a price of INR 955/t.
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